This House of Lords Library Briefing has been prepared in advance of the debate in the House of Lords on 3 September 2019 on the implementation of the recommendations of the Parliamentary Commission on Banking Standards and the opportunities for further banking reform.Jump to full report >>
The Parliamentary Commission on Banking Standards was a joint committee appointed by Parliament in July 2012. It was chaired by Lord Tyrie, then Conservative MP for Chichester and chair of the House of Commons Treasury Committee. The commission was established in the context of the 2008 financial crisis, and specifically following the 2012 London Inter-bank Offered Rate (LIBOR) scandal. The commission was established with the remit to:
The commission published four reports between December 2012 and April 2013, on the following subjects: banking standards; banking reform; proprietary trading; and the failure of Halifax/Royal Bank of Scotland (HBOS). The commission’s fifth and final report, Changing Banking for Good, published in June 2013, made over 100 recommendations. The report stated that its principal recommendations focused on five themes:
The Coalition Government published its response to the report in July 2013. It stated that the Coalition Government had made progress in reforming the banking sector, through the passing of the Financial Services Act 2012 and the introduction of the Banking Reform Bill (now the Financial Services (Banking Reform) Act 2013). The response also said that the Coalition Government strongly endorsed the principal findings of the report and intended to implement its main recommendations.
In November 2014, former members of the commission released a statement summarising the progress that had been made in implementing its recommendations. The former members acknowledged that while some of the report’s recommendations had been implemented, many others remained “unaddressed”. The commissioners stated that it was “essential that the momentum behind our reforms is maintained”.
In June 2018, in answer to a parliamentary question on banking standards, Theresa May’s Conservative Government stated that it had implemented the “major recommendations” of the commission’s report, both through the legislation cited above and by widening the remit of the Prudential Regulation Authority. The Government said that it continued to monitor the impact of those reforms.
Lords Library notes LLN-2019-0109
Author: James Goddard
The House of Lords Library delivers research and information services to Members and staff of the House in support of parliamentary business.